US tariff hike may impact Indian Pharma industry
New Delhi: The US government's proposed 25% tariff on imports of automobiles, semiconductors, and pharmaceuticals could have significant repercussions for India's pharmaceutical industry, which heavily depends on exports to the American market.
While India's semiconductor sector is still developing and is expected to see minimal impact, the new tariffs could pose challenges for drug manufacturers. The US is the largest market for Indian pharmaceutical exports, accounting for $8.73 billion in FY24, or 31% of the industry’s total exports, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Leading Indian pharma companies such as Sun Pharma, Dr. Reddy’s, and Cipla derive a substantial portion of their revenue from the US market. In fiscal 2024, North America contributed 47% of Dr. Reddy’s total sales, 32% of Sun Pharma’s revenue, and 30% of Cipla’s earnings.
Pharmexcil’s director-general Raja Bhanu highlighted that Indian firms play a crucial role in the US pharmaceutical supply chain, supplying four out of every ten prescriptions filled in the country. However, Pharmexcil chairman Namit Joshi downplayed concerns, stating that the competitiveness of Indian generic drug exports would help mitigate the impact of any tariff hikes.
Currently, Indian pharmaceutical imports into the US are not subject to import duties. The proposed tariffs, if implemented, could alter the cost dynamics of the industry and affect profit margins for Indian drugmakers.
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Former minister C M Ibrahim announces to launch new regional party for Karnataka
Kalaburagi: Two years after being expelled from the Janata Dal (Secular), former minister C.M. Ibrahim has announced that he will launch a new regional political party in Karnataka on January 24, reported Deccan Herald.
Speaking at a meeting organised by the Nava Karnataka Nirmana Andolana in Kalaburagi on Sunday, Ibrahim confirmed the birth of the new party.
The 77-year-old politician stated he would soon be meeting with other like-minded individuals to choose a symbol for the party.
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Ibrahim emphasised that the organisation would be guided by the principles of 12th-century social reformer Basavanna and the architect of the Indian Constitution, Dr. B. R. Ambedkar.
A veteran politician, Ibrahim served as Union Civil Aviation Minister during the tenure of H.D. Deve Gowda as Prime Minister and later headed the Karnataka unit of the Janata Dal (Secular). He was expelled from the JD(S) in 2023 on charges of anti-party activities.
His exit from the party followed sharp differences over the JD(S) decision to ally with the Bharatiya Janata Party (BJP). As the then state president of the JD(S), Ibrahim had publicly criticised the alliance, claiming it was finalised without his knowledge. He had also reportedly convened meetings of his supporters and expressed support for the INDIA bloc.
